The Japanese subsidiary of FTX is drawing up a plan to return client funds.
FTX Japan went live in June this year after acquiring Japanese crypto exchange Liquid on February 2. The exchange was intended to serve Japanese clients. However, due to liquidity issues that FTX experienced in early November, withdrawals on FTX Japan, similar to its parent company, were halted on November 8.
Japan Financial Services Agency announced on November 10 that it has started administrative action against FTX Japan. He ordered it to suspend other business activities such as accepting new deposits and comply with a business development order.
FTX Japan Prepares Return Plan for Customer Funds
The now-defunct FTX Japan has laid out a roadmap to proceed with withdrawals after confirming that its clients’ assets were not part of FTX’s bankruptcy proceedings.
Due to Japanese regulations mandating crypto exchanges to separate client funds from their own assets, the firm made an update on Dec. He said he was able to verify that his clients’ assets “should not be” part of FTX Japan’s property.
Listed as one of 134 companies forming part of FTX Trading’s chapter 11 bankruptcy filing on Nov. 11, FTX Japan claimed their primary focus is to reactivate withdrawals. At the same time, they reported that they aim to do this by the end of 2022.
